Solvency of Pension Reform: Issues and Challenges of the Accumulation Phase of Retirements in Nigeria

Joshua S. Adeyele, Muhammad N. Maiturare

Abstract

Objective: The valuation of pension reform was conducted with the primary purpose of determining its sustainability. Method: Compliance level among the participants was examined. In order to ascertain the accuracy of the data supplied by the respondents, their respective salary scales obtained from the payroll offi ces were used. Questionnaires were randomly distributed to workers in various units of the institutions discretionally chosen. The monthly rate of 2 percent used in the scheme valuation represents sanction imposed by the PenCom for any defaulter. Result: Evidence from the study suggests that the valued schemes are deficit as follows: private university, N254, 329, 938; Federal University, N1, 271, 649, 690. Conclusion: If the present trend of noncompliance by some employers is not intersected by the regulatory body in time, many contributors stand the risk of losing their funds as the scheme is not likely to be sustainable. We therefore recommend that the outstanding debts be paid without any further delay.